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Macro EconomyHigh Impact•13 April 2026•

1 min read

US Stagflation Fears Rise as Inflation Surges and GDP Growth Stalls

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Key Facts

1March CPI surged to 3.3%, the highest level since May 2024.

2Q4 GDP growth stalled at just 0.5%.

Version History

2 additional sources confirmed this story

The US economy is increasingly showing signs of stagflation as recent data reveals a troubling mix of high inflation and stagnant growth. Consumer price index (CPI) data for March surged to 3.3%, marking its highest level since May 2024 and intensifying price pressures. Simultaneously, Q4 GDP growth slowed significantly to just 0.5%, highlighting a sharp deceleration in economic output. This macroeconomic environment has driven investors toward safe-haven assets, with gold (XAU/USD) on track for its third consecutive weekly gain. Geopolitical instability, particularly regarding tensions in Iran, has further bolstered the demand for precious metals amid global uncertainty. The convergence of these factors presents a significant challenge for the Federal Reserve as it navigates a complex landscape between fighting inflation and supporting a weakening economy.